Featured Product

    Ravi Menon of MAS on the Evolving Regulatory Approach on Crypto Assets

    March 15, 2018

    Ravi Menon of MAS spoke at the Money20/20 Conference in Singapore about the current state of thinking on crypto assets (or crypto tokens), along with the evolving regulatory approach of Singapore. Mr. Menon added that MAS has, to-date, chosen not to regulate crypto tokens directly. However, it is focusing on the activities associated with crypto tokens, evaluating the different kinds of risks these activities pose, and considering the appropriate regulatory responses.

    Mr. Menon highlighted that the key risks that MAS is monitoring in the crypto world are in the areas of financial stability, money laundering, investor protection, and market functioning:

    • Financial stability. MAS and other regulators are studying the nexus between the crypto world and the financial system to assess how risks to financial stability may be transmitted. MAS assesses that the nature and scale of crypto token activities in Singapore do not currently pose a significant risk to financial stability. However, this situation could change; thus, MAS is closely watching this space. 
    • Money laundering. A clear and present danger posed by some crypto token activity is money laundering and terrorism financing. Intermediaries dealing in crypto tokens are already required to report any suspicious transactions to the Commercial Affairs Department. In addition, the proposed Payment Services Bill will require intermediaries that buy, sell, or exchange virtual currencies to specifically address money laundering and terrorism financing risks. Intermediaries will be required to conduct customer due diligence and establish controls and processes that are commensurate with their risks.
    • Investor protection. Where crypto tokens represent ownership or a security interest over an issuer's assets or any property, or a debt owed by the issuer, they may be regarded as securities under the Securities and Futures Act. This means that, unless exempted, issuers must comply with prospectus requirements prior to the offer of such tokens; intermediaries dealing in such tokens must meet licensing requirements; and platforms facilitating secondary trading of tokens must be approved or recognized by MAS. MAS has advised the public to act with extreme caution, should they wish to invest in crypto tokens.
    • Market functioning. Several cryptocurrency exchanges abroad have suffered cyber attacks and theft of their crypto tokens, along with reports of rampant market manipulation and other fraudulent activities on crypto-exchanges. "We are watching with interest developments in the US, where futures contracts based on crypto tokens have been introduced on regulated exchanges," said Mr. Menon. These exchanges have clear rules governing trade and post-trade activities. Such products could also potentially have a stabilizing influence on crypto token prices. However, regulation cannot address all the concerns around crypto tokens. The industry too has a part to play in strengthening the ecosystem—for instance, by adopting best practices around transparency, cybersecurity, and recordkeeping.

     

    Related Link: Speech

    Keywords: Asia Pacific, Singapore, Banking, Crypto-Assets, Fintech, Regtech, Financial Stability, MAS, BIS

    Related Articles
    News

    SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

    SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

    August 22, 2019 WebPage Regulatory News
    News

    ECB Revises Prudential Provisioning Expectations for New NPEs

    ECB is revising its supervisory expectations for prudential provisioning of new non-performing exposures (NPEs) specified in the “Addendum to the ECB Guidance to banks on non-performing loans” (Addendum)

    August 22, 2019 WebPage Regulatory News
    News

    CFTC Proposes to Revise Information Collection on Margin Requirements

    CFTC is requesting comments on the burdens associated with certain aspects of the Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (final rule).

    August 21, 2019 WebPage Regulatory News
    News

    FASB to Delay Effective Date for Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply the standard that addresses this area of financial reporting.

    August 21, 2019 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.9

    EBA published phase 2 of its technical package on the reporting framework 2.9, which includes validation rules, Data Point Model (DPM) data dictionary, and XBRL taxonomies.

    August 21, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Its Consultation Related to SME Financing

    FSB published responses received to the consultation on a report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing.

    August 21, 2019 WebPage Regulatory News
    News

    APRA Revises Related Entities Standard for Banks

    APRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.

    August 20, 2019 WebPage Regulatory News
    News

    EBA and ESMA Issue Joint Response to EC Letter on Crypto-Assets

    EBA and ESMA issued a joint response to the EC letter, from July 19, 2019, on crypto-assets.

    August 20, 2019 WebPage Regulatory News
    News

    FSB on Responses to Consultation on Wind-Down of Trading Portfolios

    FSB published responses received to the consultation on the solvent wind-down of the derivatives and trading book portfolio of a global systemically important bank (G-SIB).

    August 19, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Consultation on Resolvability Disclosures

    FSB published responses received to the consultation on disclosures for resolution planning and resolvability of banks.

    August 19, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3681